Lick or Treat & Dogs-giving BarkBoxs $1.6B SPAC. Budweisers spiked lemonade. Social Medias automation.
This is nick. This is jack and this is snacks. Daily welcome back. It is monday january eleven. Let's get this out of the way last month in the united states. The number of jobs shrank shrank for the first time. In eight months twenty twenty. What are you doing jack. Let's make this our best one yet. Tbo y for our first story bark box. The birch box for your dachshund is going public. Vias back jack. Fun fact here. They can get subscription. This can happen canines unless your dog is still on the password from some other. Because your dog's not catch jack. Second story gap. Bud light seltzer lemonade. Peach that is actually the latest drink from anheuser. Busch funny thing. We noticed knackers. This is the same strategy as apple did with iphone. It is reminded me the apple's also a for for our third and final story facebook twitter and the rest of social media. Just blocked the precipices. Jack and i are looking at automation. Great for scaling. Jack terrible for public discourse not just as jessica awful do last zach de last actually actually do a lot more but before we jump into. That wonderful makes a story start this week. One hundred and twelve year. Old general motors wants you to know how young it is so for the first time in like sixty five years. Gm got some work. Done the logo for general motors. Just got updated in detroit. The trying to look more like they entered in san francisco last semester. They really didn't take any risks. Here they made the classic move. They went from capital g capital m. to lower case g lark as jack in the logo now used to form square. Remember a lot of hard edges kind of like if you were running with scissors you get cut. It was sharp but they wanted to soften the corners to show these millennials in gems ears. They're approachable plus. They went from navy blue to like a harmless skin care product blue. That's the new tone. According to the press release the whole goal here is to send electric vibes to reflect like the future of gm's electric cars. Hey it's nick. It's jackets just us. We just want to talk to you for a second. The logo your logo. That wasn't the problem if you think about it. General isn't a very inspiring adjective. Exactly the issue was actually your name the logo general. Admission is the cheapest seat in the house. Generally speaking means speaking with no passion. And our buddy. Miriam webster says that general is defined as the main parts but not the details and it's all about the details general motors. Here's the solution. You should have just renamed to the general general. It's much stronger as a noun then as an adjective so true. What did are three stories. Ns next daily snacks. Here ray. Food candy they don't reflect the views of her family. Still live formation just so recommending any securities. It's not a research. Report or investment advice offer or sale of a security next digestible. Business news financial. Llc member favor slash sipc p. c. four. I we're actually. Were laughing out loud about this when earlier. Farc box the original dog subscription box. It's going public in a one point. Six billion dollars spec this year. I think it's the only dog subscription box but our questionnaire is this a company it just a product. It's a fair question for two thousand. Eleven company was founded two thousand eleven. Jack basically a pretty simple concept here. It's a subscription box for your profit puppy. Yes it is comes once a month and now a million people have signed up for you. Drop in twenty three dollars a month. You get free shipping to toys to treats and there's one theme every month. The dog actually smells it. Knicks brother-in-law they have a dog and the dog goes crazy. Win the mailman. Mike approaches the door with the barkat. They know they can tell we. Dare you on subscribe to that thing. I am definitely subscribing to this because when river doesn't have something to chew on i feel like a terrible person. You get that pet parent guilt. You know you get that pet parent. They have themed monthly boxes for example in october. A liquor treat arrives at your door jack out november. You got the dogs giving themed box. This december the box was called home alone last year. Twenty nine thousand nine. They did the muckracker. Also there's something called bar buddy that this company has launched. They're calling it the tinder for dogs. You swipe right to an abandoned cockapoo that's how it goes down impressive. We think tenders the wrong analogy but very good to promote dog adoption. Alright we check out the metrics on this thing cancellation rates for these bark. Box subscription boxes extremely love. Your dogs puppy is looking at you or something. You cannot say no to. Your cuteness is a powerful. Anti churn strategy subscription businesses are fantastic but running a subscription box company is complicated chewy like the sell everything dog stuff online company. They have a subscription program with a wild statistic. This subscription program drives seventy percent of their sales. Seventy percent of sales are customers that just set it and forget it and get refills. Every month and shoe investors they love that recurring revenue from those set. It and forget reliable. Customers but subscription companies aren't necessarily profitable. Yeah birch box subscription boxes. They're struggling to make a profit trying to get you to buy the sephora lipstick. That's in their little birch box and blue apron which tried to do subscription boxes of food that you still have to cook is basically on the mcdonald's dollar menu on wall street but here's what jack and i found fascinating about box added the three hundred and sixty five million dollars of revenue. They brought in last year. Two hundred and twenty one million was gross. Profit that's squeezing a whole bunch of prophet juice out of those melons neck yesterday's because they're selling their own products in these black boxes. It's their own goods. The two and one memory foam dog bed in a donut. Shape jack the bright toothpaste. Those are both produced manufactured by bark bark. And that's how they get the big profits. So jack what's the takeaway for buddies over at barc box. Arbox is neither product nor company. We think it's a future. Learn right jack the whiteboard out here. You got general mills. He got nestle unilever. All of those companies. They bought up smaller dog food companies in just the last few years historically they were food companies but they recently recognized that humans the kind of treating their beagles better than they're basically do but jack developing a direct to consumer subscription business. That is hard jack. How about building a passionate audience around that subscription business hat is really tough jack. How about running that online based subscription startup profitably. I quit. i can't even do it. Yes the hardest thing and that is why unilever acquired direct to consumer startup dollarshaveclub a few years ago because it had to learn how they did it. Big companies haven't been able to learn themselves how to run a direct to consumer subscription company. So most have to learn by buying one that is why bark box could be a future. Learn coalition for our second story all of social media and even ecommerce are boycotting president trump. This week the longer term problem is that social media's automation strategy is failing right so it's been almost a week now. Five people lost their lives and that insurrection. Last week and the reputation of america's democracy was badly damaged for a long period of time. Also we witnessed a double standard in the way. The police treated trump's mob last week. Yes we did compared to the way that police treated the black lives matter protesters this entire past year. You and all that up. This event basically became the straw. That broke social. Media is back in a couple of days tech decided all at once on wednesday and thursday last week that the president must be muted and snacks. Here's the key distinction. You got to keep in mind while lying is protected by free speech inciting violence and endangering the public safety. that's not protected. Nick you know that thing you scroll through the terms and conditions when you're setting up a new account you just click except you don't even read it totem charming. You never see it when it comes to tech platform. there's actually language in their forbidding. You from using the platform to promote violence and we saw that put into action last week with this epic rundown i twitter blocked. Trump's account permanently on friday and facebook has blocked it for the next two weeks and amazon blocked his twitter account so they could not live stream video to people and then pay pal shop fi. They jumped in blocked his ability to sell merchandise and even accept donations and youtube. Change our policy. Instead of simply removing single videos that break their policies youtube will now start blocking entire channels of trump's and shack. How about snapchat and tiktok. They kind of had to make moves after facebook and twitter. They decided to take away. Trump's megaphone as. Well put that altogether and we got ourselves a striking demonstration of tex power in refereeing speech and commerce on the internet. Yeah that's a whole different takeaway for different day. So jack what's the takeaway for today for our buddies over in tech facebook strategy of automation is failing. Yes knackers facebook has a whole bunch of rules about what you can and you can't post for example paid political ads on facebook. Those cannot lie and nobody can promote violence with their posts on facebook so when we look a little bit deeper into facebook. They've got fifty six thousand employees on the other hand they've also got two point seven billion users it's corner ratio there so to monitor all the post. Make sure they're not breaking rules. Each facebook employees would have to oversee the posts of forty eight thousand facebook users across instagram facebook whatsapp. Whatever other apps. It's basically like each employee would have to have their own dominion. Yeah so instead of that. They use artificial intelligence which reads the post that we make and flags the rule breakers so that a human can check them out. But here's the thing as was shown last week that artificial intelligence strategy is failing. Thanks to the new york times. We know that facebook groups were used to organize the attempted insurrection by trump supporters. Last eventually got taken down but only after reporters had to tell the fbi all about thanks to separate reporting from guy named judd leg who runs a great newsletter we know that misleading political ads. Were up this campaign season for days. Viewed by millions of people just like the facebook groups of eventually they get taken down but only after reporters alert the fbi to them. Here's how it seems always go with facebook. Artificial intelligence misses something. Okay check someone finally flags and let them know steph to then. Facebook takes down but only after the damage has been done and that process is all because of automation with no human involvement. It's low-cost and that is why. Facebook is incredibly ridiculously profitable but it is also why the platform has so much misinformation and so much policy breaking content still makes facebook the automation. It's failing for our third and final story. Honestly just in time for dry january. Bud light is launching. A hard seltzer lemonades. Actually a little late for dragic the couple of weeks but that lemonade. Part of the story is actually an iphone. Strategy to jack feels like we we kind of got a pendulum situation here. The pendulum swung from like light beers. Back in the day. Yeah millie five freshman year. We were in college all the way to like heavy quadruple as you had to like. Eat this it was liquid bread. That's the late twenties through until today for me. Well that got intense with beer but then. The pendulum swung back to lighter stuff. And that's where white clock came in white cloth summer. It's kind of health trend. People wanna get drunk for under one hundred calories per drink and go gluten free possible minimum sugar and that basically is why budweiser stock is down. Thirteen percent in the last year because beer sales only grew less than one percent. And that's because the spike seltzer market doubled again last year for the third year in a row little context. We got a sprinkle on here. Snacks hard seltzer growing crazy fast. But still only four percent of the beer market so big beer is still the big player in this market. But they don't like that that tiny little wedge is growing. So darn fast. They didn't like it. So in. Just the last three hundred and sixty five days get how many beer companies have jumped into spike seltzer molson course check corona advert analyst. Natty light which we didn't know could get any lighter now it could apparently that budweiser coca cola is getting into this. And despite all of them jumping to this fun for array of spike seltzer still white claw controls over half the spike seltzer market. Truly controls about a third of this bike seltzer market and the rest is like kind of split between a bunch of your friends and cousin is it just launched some spikes out startups. Now when anheuser busch which is budweiser's parent company. When they first got spike seltzer. They launched bud light strawberry and bud light black. Cherries bike seltzer kind of stuff. That's like on the jolly rancher flavor spectrum. that was the goal but dinner buddies over anheuser. Busch they noticed there were fewer spike seltzer in the lemonade flavor but that that little category was growing faster than the rest was a niche within a niche and that niche of spiked shelter. Lemonade was growing nine times more than it did. The previous year. Anheuser busch decided. That's where we should be. Yes so. They're launching their first bud. Light spike seltzer lemonade. This summer kicking it off. Debut style with the super bowl ad in february. Go big or go home. So jack what's the takeaway for our buddies over at budweiser. It's counterintuitive but segmentation can drive growth. So here's what you think. Jack and i were talking about this or what. You'd think you'd think that simplifying your product offering would be better for like it's easier for the consumer to choose if there's just one thing it's easier for the company to make it if there's just one thing however if a company has the resources to segment then it can launch a specific product for specific types of customers if there is a product just for you your one hundred percent satisfied. You don't after compromise. Every customer gets exactly what they want. Funny thing jack. And i noticed apple. Does this exact thing. When it comes to price it used to be one iphone. That's your only option. Six hundred bucks pretty expensive unaffordable for many now. They've got like a dozen iphone. Starting at four hundred dollars for the sec. But it goes all the way up to the fourteen hundred dollar ruby. Crusted twelve pro. Max plus handcrafted. By tim cook every other tuesday. Now apple used price segmentation to grab more of the smartphone. Market bud light is using flavor and product segmentation to grab more of the spike. Seltzer market. jack can your whip the takeaways for us to start the week bark. Box just got acquired by spec called northern star acquisition corp. soon that company will change their name to bar the box subscription business. It is tough so they could become a learn cuisine. Second-story social media has blocked president trump for encouraging a mob to storm the us capitol but it was their failing automation strategy. That was an enabler in last week's attack for our third story. Bud light spiked seltzer lemonade. Peach earls out the time jack their segmenting despite booze market kinda like apple segments smartphones. Now time for our snack factor the day. This one sent in by silence finley from lovely waco texas where he's a fan of lovely waco texas. The invention of dr pepper occurred in waco texas in eighteen eighty five. It turns out. Dr pepper preceded the invention of coca cola. Buy one single lovely year impressive. There's also a dr pepper museum in waco texas. It turns out also seventy five. Percent of the world's snicker bars manufactured in waco texas waco the city that feeds the world's sweets waco jack. We don't do locale no we. Don't we power chicago snacker. Starting the week with if you haven't yet you can scroll down and we'd love if you drop of five star review and if you're listening on spotify it's super easy to share as a story on her instagram lease. That helps us grow. We love how that looks and we can't wait the tomorrow. See if you now. And before we go happy birthday to emily and lucy among and daughter combo who share the same birthday in hood river oregon. Incredible i heard hood. River is gorgeous especially for mountain biking. Yeah it's supposed to be great. And happy. Birthday to katsumi in houston texas and isa in los angeles and katrina see grope in south san francisco i can see from here katrina and holly and clements in philadelphia and hayden florez in santa barbara and creepy. And he's and happy named eight. He komo in dubai and brad thompson. Nick and i are impressed. That you're kicking off your mba down in miami patel also kicking off the nba up in new jersey. Happy anniversary to antonio in june in oceanside california and a two year anniversary for irwin ronald. This is jack. I own stock of amazon nikkon stock of apple shop five and northern star acquisition corp. The robin hood snacks podcast. You just heard reflects the opinions of the host who are associated persons of robinhood financial llc and does not reflect the views of robinhood markets inc. Her any of its subsidiaries or affiliates. The podcast is for informational purposes. Only and is not intended to serve as a recommendation to buy or sell any security and is not an offer or sale of a security. The podcast is also not a research report and is not intended to serve as the basis of any investment decision robinhood financial llc member finra sipc.